Loading page...

Romanian Business News - ACTMedia :: Services|About us|Contact|RSS RSS

Subscribe|Login

Half of family businesses in Romania do not last to second generation

170317101243254_succession_planning_for_family_businesses.jpg

Half of family businesses do not last to the second generation, about 20% last to the third generation and only 3% go beyond the third generation, according to the study “Romanian business barometer” published on Thursday by the consulting and audit company EY, which shows that 44% of company owners say their business depends on them and 62% have not chosen a successor yet.

247 businessmen involved in family business answered 27 questions online over February 8-March 5, 2017.

Of the people interviewed, 80 have family businesses with one figure business exceeding one million euros.

More than three out of four respondents consider the owners plan successions.

About 20% of Romanian family businesses of over 1 million euros passed the affair to the next generation, while 73% of them are still led by founders and are preparing for succession.

In only 27% of cases companies over one million euros are led by leaders who took over the business from founders, compared to 53% of world companies interviewed in the study.

Most companies have a single family member in top management.

80% of companies have at least one woman in top management, compared to 95% which have at least one man at that level. 49% of businesses have more than two men in top management compared to 31% which have at least two women.

The situation is similar in the case of employees which are not part of the managerial team but are family members.

45% of businesses do not have women hired from among family members, compared to 34% which have no men.

Most businesses have a single family member employed, besides founders, while 33% have at least two male family members employed and 29% have at least two female family members.

The study shows that a quarter of family businesses say the extension of the deadline for the application of non invested profit is the measure with the most significant impact for business in 2017.

33% of businesses over one million euros had respondents who indicated the measure as one with the most significant impact for business in 2017.

VAT reduction to 19%, followed by elimination of basic calculus for social contributions ranks second.

According to the report, most family businesses in Romania (94%) use specialised consulting to address different business aspects. However only 27% use consulting services constantly.

More